e-GOLD' is not a currency of any sovereign country. Transactions in e-gold are not legal, and violate the regulatory framework in India. This warning comes from the Reserve Bank of India. The RBI has warned the public, banks, moneychangers and financial institutions against using e-gold as a currency. The RBI has, in its warning, stated that some agencies and persons are wrongly creating the impression that transactions involving e-gold has the status of a foreign currency, and is freely permitted in India.